Personal Loan Providers For Borrowers Struggling With Their Credit
If you have low credit obtaining a personal loan or any form of credit can seem a far off dream. While it may seem impossible to obtain credit when you have bad credit or a thin credit file it is not impossible. You have many options when it comes to personal loans for people with bad credit, though it may not seem so when searching in Google due to all the payday loan lender spam that proliferates the search engine results. I help people with no credit and poor credit to find lenders willing to work with them.
Just because you have a low credit score does not mean bad credit. You may not have a thick credit file to base a robust score upon. You may have a short credit history but have a low credit utilization and a good payment history. Basically a low credit score does not always mean that you are not responsible with the credit that you do have. The lenders I will review below work with those who have low credit and those who are new to credit. Each lender I review allows you to check what interest rate you qualify for without harming your credit score due to a hard inquiry. Each of these loan providers work with people with credit scores under 700, however I can make no guarantee that you will be approved for a loan.
Americas Choice is the perfect lender for those with low credit scores no matter the reason why your score is low, as they work with people new to credit as well as those with bad credit. You can apply for loans anywhere from $1,000 to $35,000. Loan terms I should point out vary by state but you may qualify for loan terms as long as 5 years. The APR for Americas Choice loans will range anywhere from 9.95% to 39.95%, depending on your credit score and other variables. Americas Choice also offers late fee forgiveness for your first late payment. You only need a score of 550.
This used to be the go to lender for those with bad credit, but lending club has tightened up their minimum credit requirements to 620. This is a peer to peer lending platform, but the peer nature is long dead as it has been over run with large banks. Loan amounts are anywhere from $1,000 – $35,000 with an APR ranging from 5.7% to 25.26% but do not expect to see any rate under 18% if your credit score is low. LendingClub often times has very high origination fees, upwards of 5% which of course raises your APR. Even with the higher interest rate and high origination fees this could be a lender you can turn to.
This is an excellent lender, but you will need at least a credit score of 660. The minimum they will lend is $5000 and you can borrow as much as $35,000. The loan terms range from 3 to 5 years. The origination fee ranges from 1.05%-4.75% and the APR ranges from 6.44% to 29.27%, those with poorer credit can expect to pay 18% or higher interest.
These lenders might offer you the loan that you need with an APR and terms that you can live with. If you find that you are not qualified for a loan with these lenders I would advise you to work on your credit score perhaps with a secured credit card. You should avoid turning to payday loans or title loans during this time, they will not help your credit and could trap you further into debt.